MKH Berhad 23 Management Discussion and Analysis Report This Report provides a discussion and analysis of the Group’s financial performance for the financial year ended 30 September 2021 (“FY2021”), including explanations for significant fluctuations over the previous financial year. The Group’s principal business segments, which remained unchanged from the preceding year, comprise Property Development and Construction; Plantation; Hotel and Property Investment; and Others. The segment “Others” comprises Trading, Manufacturing, Investment Holding and other nonreportable operations. FY2021 FINANCIAL HIGHLIGHTS The Group’s revenue and proft before tax for the fnancial year under review and the preceding year are summarised as follows: For the fnancial year ended 30 September 2021, the Group’s revenue and proft before tax (“PBT”) increased by 0.2% and 38.3% to RM913.6 million (FY2020: RM911.9 million) and RM161.1 million (FY2020: 116.5 million) respectively mainly due to the contribution from Plantation Division as a result of higher average selling price of CPO. In addition, the Group recorded unrealised foreign exchange gains of RM8.0 million as compared to the preceding year unrealised foreign exchange losses of RM13.9 million mainly from the Plantation Division following the strengthening of Indonesian Rupiah against its borrowings in United States (“US”) Dollar (30-09-2021: USD1: Rp14,307; 30-09-2020: USD1: Rp14,918). Excluding the unrealised foreign exchange gains of RM8.0 million (FY2020: unrealised foreign exchange losses of RM13.9 million), the Group’s PBT was higher by 17.4% at RM153.1 million (FY2020: RM130.4 million) which was mainly due to higher gross proft from Plantation Division as a consequence of higher average CPO price of RM2,945/MT (FY2020: RM2,227/MT), lower loss on changes in fair value of investment properties totalling RM5.0 million (FY2020: RM12.2 million) and the absence of fair value losses from transfer of inventories to investment properties (FY2020: RM5.2 million) coupled with lower interest expense from unwinding of discount on landowners’ entitlement of RM7.6 million (FY2020: RM19.0 million) from the Hotel and Property Investment Division and the Property Development and Construction Division respectively. 2021 2020 Changes RM’000 RM’000 (%) Group Revenue 913,572 911,926 0.2 Segments • Property 508,985 561,833 (9.4) Development and Construction • Plantation 294,458 250,453 17.6 • Hotel and Property 23,949 25,036 (4.3) Investment • Others 86,180 74,604 15.5 Group Profit 161,054 116,476 38.3 Before Tax Segments • Property 36,222 73,839 (50.9) Development and Construction • Plantation 101,903 26,192 289.1 • Hotel and Property 955 (7,994) 111.9 Investment • Others 21,974 24,439 (10.1) Artist’s impression of MKH Boulevard 2, a 42-storey high-rise development situated next to Kajang Mass Rapid Transit (“MRT”) and KTM Komuter Train Integrated Station
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